Strategy Inc.
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did MSTR Beat Earnings? Q1 2025 Results
Strategy (formerly MicroStrategy) delivered a bruising first quarter, posting an EPS loss of $16.49 against a consensus estimate of just $0.02, a miss of more than 70,000%, as the company absorbed a $5.91 billion unrealized fair value loss on its bitcoin holdings — the direct consequence of adopting the new ASU 2023-08 fair value accounting standard and bitcoin's slide to $82,445 by quarter-end. The resulting GAAP net loss totaled $4.22 billion. Revenue offered little relief, falling 3.6% year-over-year to $111.07 million and missing the $116.39 million consensus by 4.57%, with the legacy software segment dragged down by a 16.2% drop in product support revenue even as cloud subscription sales surged 61.6%. Shares dipped modestly in after-hours trading following the report. Looking ahead, CFO Andrew Kang flagged roughly $8.00 billion in anticipated Q2 fair value gains at current bitcoin prices near $97,300, and management raised its full-year BTC Yield target to 25% while unveiling a fresh $21.00 billion ATM equity offering to fund continued bitcoin accumulation — setting the stage for what investors will be watching closely when <a href="https://247wallst.com/investing/2025/10/30/live-earnings-coverage-of-strategys-q3-earnings/">results arrive next quarter</a>.
- Subscription services revenue grew 61.6% YoY as customers transition from product licenses to cloud subscriptions
- Record capital markets execution raised approximately $7.7 billion in Q1 net proceeds
- Acquired 80,715 bitcoins in Q1 2025 at an average purchase price of $94,922 per bitcoin
- Adoption of ASU 2023-08 fair value accounting resulted in $12.7 billion cumulative uplift to retained earnings
- BTC Yield of 11.0% in Q1, 13.7% YTD through April 28, 2025
“We successfully executed our record $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period. In Q1, we also broadened our capital base with two of the most successful preferred stock IPOs in a decade. Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space.”
MicroStrategy CEO, on the earnings call
Forward Guidance & Outlook
Strategy is increasing its 2025 BTC Yield target from 15% to 25% and its 2025 BTC $ Gain target from $10 billion to $15 billion, reflecting strong year-to-date execution (13.7% BTC Yield and $5.8 billion BTC $ Gain achieved through April 28, 2025). The company announced a new $21 billion ATM common stock equity offering to fund continued bitcoin acquisitions. CFO Andrew Kang noted that at the current ~$97,300 bitcoin price, the company would expect to recognize approximately $8.0 billion in fair value gains thus far in Q2 2025. Approximately $20.9 billion remains available under the STRK preferred stock ATM and approximately $128.7 million under the October 2024 common stock ATM.
MSTR YoY Financials
MSTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.